Econ 545 Micro Analysis Project 1
Business Economics 545
July 27, 2014
Based in recent surveys, reports show a trending decline on the rate at which physicians move. Statistically, this may suggest the economy is preventing or affecting physicians from frequent job changes, or retirement. According to survey results, the move rate was reported as follows: 18.2% in 2008, 15% in 2009, 12.4% in 2010, and 11.3% in 2011. In as much as this reflects an obvious trend of lower move rate over the years, and may be attributed to a number of factors, it is however not enough scientific measure to ascertain the market supply and demand for physicians.
The purpose of this paper is to analyze the current position …show more content…
Availability of non-physician services. The use of nurse practitioners (NPs), physician assistants (PAs), and other clinicians affects the number of physicians needed to care for a given population.
Economic factors. Economic wellbeing affects the coverage and comprehensiveness of medical insurance, as well as the ability and willingness to purchase certain healthcare services. According to research, demand for physicians is projected to grow 26.3% between
2006 and 2025, from 680,500 to 859,300.
Supply can be simply described as the schedule of quantities of a good and service that people are willing and able to sell at different prices. The Law of Supply states that “all other things being equal, price and quantity supplied are directly related” (Slavin, 1999). This means that as price rises, people sell larger quantities; and conversely, as price falls, people sell less. For instance, if the price of tablets (say iPads) increases, Apple will increase the quantity they supply. So at the price of $500 per iPad mini, Apple